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SoundCloud’s future has been up in the air for sometime now. Today, SoundCloud announced that it has closed the investor round necessary to up and running for the foreseeable future. Per the agreement, CEO Alex Ljung will be stepping aside effective immediately. Former Vimeo leader Kerry Trainor will take over to become SoundCloud’s new CEO. Mike Weissman will be the COO of the company.
Alex Ljung will not completely part ways. According to the announcement, Ljung will stay on to “fully focus on the role of the chairman and the long-term.” Ljung will stay with the company to help it through this transition and change focus within the company.
We currently don’t have the exact number for the investment, but Ljung says that it is “the largest financing round in the history of SoundCloud.” In addition, Axios shared details of a shareholder memo, stating that the company needed a full reorganization and was pending a reorganization proposal. We currently do not have details about the proposal, but it seems the proposal may have been accepted due to this new investment going through.
Per the memo, SoundCloud’s new and existing investors will receive Series F stock, which is a special class of common stock that has seniority and preference. In addition, existing Series E investors will have their liquidity preference cut by over 40 percent.
